Banco Santander is sounding out investors on a significant risk transfer tied to roughly €3.3 billion of global corporate loans, according to people familiar with the private talks.
Strong demand for SRT instruments is driving the planned deal, letting the Spanish lender move risk on a sizable loan portfolio.
About 40% of the underlying loans finance US companies, giving the transaction a substantial US corporate-credit component.
The planned issuance would add to banks' use of SRTs to manage balance-sheet risk while tapping investor appetite for structured credit exposure.
Is Santander's risk transfer a sign of efficiency or a warning of hidden vulnerabilities in the corporate loan market?
As banks shift billions in risk to private credit, are regulators prepared for a crisis originating outside traditional banking?
How are growing climate and nature-related risks factored into the value of these complex multi-billion-euro loan portfolios?